1

COURSE GUIDE FOR (Negotiable Instruments Law)

Section/Schedule,
2nd SEMESTER OF A.Y 2021-2022

Professor: JUDGE STANLEY MARVIN J. PENGSON

Email address: stan_pengson@yahoo.com
No. of Units: 3
Book Preference/s: Aquino, T. 5th Ed., (2018) Notes and Cases on Negotiable Instruments Law: Rex Book Store
Platform/s: (Zoom)
Methodology: (Recitation/Quiz/Lecture)

I. GRADING SYSTEM
A. Recitation/Quizzes/Attendance/Case Digest- 30 %
B. Mid Term Examinations 30 %
C. Final Examinations 40 %
TOTAL: 100%

II. COVERAGE FOR MIDTERM EXAMINATIONS (8 weeks)

Week Topic/s Resources, Provisions and Cases

1. General Considerations 1. Governing Law.

1.1 – Applicability of the Negotiable Instruments Law, see Kauffman v. PNB, G.R. No. 16454,
September 21, 1921.
(a) By analogy, see Borromeo, et al., v. Sun, G.R. No. 75908, October 22, 1999.
1 GSIS v. C.A. and Sps. Racho, G.R. No. L-40824, February 23, 1989
2. History of NIL (a) PNB v. Zulueta, G.R. No. L-7271, August 30, 1957
(b) Chan Wan v. Tan Kim, G.R. No. L-15380, September 30, 1960.

2.1– Interpretation of the NIL.

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3. Functions a) Substitute for Money.

- Lozano v. Martinez. 146 SCRA 323.
b) Credit Instrument (medium of exchange, increases credit and purchasing power in circulation.
c) NI as evidence (proof of transaction).
- Citibank N.A. v. Sabeniano, G.R. No. 156132, October 16, 2006.
- Emilia Lim v. Mindanao Wines & Liquior Galleria, G.R. No.175851, July 4, 2012.
- Pua v. Spouses Lo Bun Tiong, G.R. No. 198660, October 23, 2013.

3.1 – Not a Legal Tender, see Section 52, R.A. 7653 “New Central Bank Act”
(a) Coins as Legal Tender, see BSP Circular No. 537, Series of 2006
(b) see Section 60, R.A. 7653 “New Central Bank Act”
- Villanueva v. Santos, 67 SCRA 648.
- Article 1249, NCC
- Managers’ checks, cashier’s checks, or certified checks, see Tibajia, Jr. v. Court of
Appeals, 223 SCRA 163

(c) Exceptions: When Deemed Payment.

- BPI v. Spouses Royeca, G.R. No. 176664, July 21, 2008
(d) When acceptable to satisfy Obligation.
- see Biana v. Gimenez, G.R. No. 132768, September 9, 2005

4. Features 4.1 – Negotiability

- Traders Bank v. Court of Appeals, et al., G.R. No. 93397. March 3, 1997
4.2 - Accumulation of Secondary Contracts
- State Investment House, Inc., v. Court of Appeals, et al., G.R. No. 101163, January 11,
1993
5. Kinds of Negotiable A. Bill of Exchange (BOE) Section 126, NIL.
Instruments B. Promissory Note (PN) Section 184, NIL.
5.1 Bills of Exchange.
(a) Drafts
(b) Inland Bill & Foreign Bill, Sec. 129, NIL
(c) Checks. Section 185, NIL -
c.1 - Distinctions between BOE and CHECK.
(d) Clean and Documentary BOE

6. Parties to Negotiable
Instruments
7. Distinguished from Non-
Negotiable Instruments
8. Incidents in the Life of a
Negotiable Instruments
1. How Determined?
2 Negotiability
3
5.2 Promissory Notes:
(a) Certificate of Deposit (Bank Certificate), see Far East Bank and Trust Company v.
Queremit, G.R. No. 148582, January 16, 2002 cited in Prudential Bank v. CIR, G.R.
No.180390, July 27, 2011
(b) Bonds and Debentures defined; Kinds.
(c) Bank Notes defined.
5.3 When Bills treated as Notes, Section 130 and Section 17 (e), NIL.
5.4 Distinctions between PN and BOE.
(a) Promissory Notes
(b) Bill of Exchange
(c) Parties after Issuance
(d) Referee in Case of Need - Section 131, NIL.
7.1 Requirements of Negotiability vis-à-vis Validity of the Instrument
7.2 Non-Negotiable Instrument vis-à-vis Valid Obligation, see assignment of credit, Arts, 1624-
1635 NCC
7.3 Derivative Title v. Clean Title
7.4 Who guarantees solvency of debtor in negotiable instruments?
7.5 Distinctions Between Negotiable and Non-Negotiable Instruments:
- GSIS v. C.A. and Sps. Racho, G.R. No. L-40824, February 23, 1989
- Kauffman v. PNB, GR No. 16454, September 29, 1921
- Sesbreno v. Court of Appeals, et al, G.R. No. 89252, May 24, 1993
- Consolidated Plywood Industries Inc., v. IFC Leasing and Acceptance Corp., G.R. No. L-
72593, April 30, 1987.
- Caltex (Philippines), Inc. v. Court of Appeals, et al., G.R. No. 97753, August 10, 1992
(a) Factors in Determining Negotiability
(b) Acceptance, a condition sine qua non?
- PBCOM v. Jose M. Aruego, G.R. Nos. L-25836-38, January 31, 1981.
(c) Effect of Indorsement
1.1 Rationale of Formalities.
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- Salas v. Hon. Court of Appeals, et al., G.R. No. 76788, January 22, 1990.

2. Effect of Estoppel, see BDO Savings and Mortgage Bank v. Equitable Banking Corp., et al., G. R. No. L-
74917, January 20, 1988. (sound?)

3. The Requisites of Negotiability

3.1 It Must Be Signed By the Maker Or Drawer.

3.1a - Section 1, NIL - related provisions, principles and cases.
1. Electronic Messages
a. Materials;
b. Type of Signature

3.2 It Must Contain an Unconditional Promise or order to Pay a Sum Certain in Money.

(a) Promise or Order to Pay

1. Equivalent Words
2. Mere Acknowledgement Not Sufficient
- See Pacifica Jimenez v. Dr. Jose Bucoy, G.R. No. L-10221, February 28, 1958
3. Mere receipt, cash vouchers
4. Consideration of Entire Instrument

(b) Promise or Order Must Unconditional

(1) NCC, Arts. 1173 and 1181
(2) Section 3, NIL
(3) Reference to Transaction
(4) Subject to Transaction
(5) Account to be Debited or Source of Payment
(6) Distinctions: Funds for Reimbursement vis-à-vis particular Fund for Payment
Case: Metropolitan Bank & Trust Company v. Court of Appeals, G.R. No.
88866, February 18, 1991.
6.1 Postal Money Order - see Philippine Education Company Inc. v. Soriano, et
al., G.R. No. L-22405
6.2 Treasury Warrant – see Benjamin Abubakar v. The Auditor General, G.R.
No. L-1405, July 31, 1948
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6.3 Letters of Credit; Certificate of Stock; Bill of Lading; Warehouse Receipt &
Aval.

(c) Payable in Sum Certain in Money.

(1) Money
(2) Option of Holder, Section 5(d), NIL
(3) Sum Certain, Section 2, NIL:
(4) Interest;
(5) Installment payments;
(6) With exchange;

3.3 Payable on Demand or at a Fixed or Determinable Future Time- Section 7 & 4, NIL.

a. Payable on Demand
b. Payable at Determinable Future Time
(1) Acceleration Clauses;
(2) Insecurity Clauses;
(3) Extension Clauses;
(4) With Cost and Collection of Attorney’s Fees

3.4 Payable to Order or to Bearer.

a. Distinctions: Between instruments Payable to Order or to Bearer.
b. Bearer Instruments – Section 9, NIL
(1) Fictitious Payee Rule
(2) Burden of Proof Under the Fictitious Payee Rule.
(3) Bad faith Exception Fictitious Payee Rule.

4. Only or Last Indorsement is in Blank

(a) Order Instruments.

(1) Payees
1.a - Construing ‘Payable to the Order of the Bearer’, Views.
American National Bank v. Kerley cited in De Leon, NIL, 1993 Ed. p.50

4.0.1 Omissions and Provisions Not Affecting Negotiability, Section 6, NIL

1. Undated Instruments, Section 6 and Section 17(c), NIL;
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2. Insertion of Date, Section 13, NIL;

3. Presumption as to Date, Section11, NIL;
4. Effect of Ante-Dating and Post-dating, Section 12, NIL
4.0.2 Additional Provisions Not Affecting Negotiability, Section 5, NIL
1. Collateral;
2. Confession of Judgment
3. Waiver by Obligor
5. Summary Rules on Negotiability

3 Interpretation of 1. Adopted Statutes and its Effects.

Instruments 2. Effect of Implied Repeal of the Code of Commerce.
3. Rules of Construction in Case of Ambiguity or Omission.
a. Marginal Figures.
b. Joint obligation.
c. Joint and Several Obligation.

4 Transfer and Negotiation 1. Modes of Transfer

1.1 Non-negotiable Instruments
1.2 Negotiable Instruments
a. Other Modes of Transfer
1.3 Distinctions Between Assignment and Negotiation

2. How Negotiation Takes Place.

2.1 Issuance
a. Delivery Essential
2.2 Subsequent Delivery
a. Delivery Essential
b. Other Purposes of Transfer
c. Indorsement of Bearer Instrument, Section 40, NIL.

2.3 Incomplete Negotiation of Order Instrument

a. Equitable Assignment
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b. Transferee does not enjoy presumption.

3. Indorsement
3.1 - Where Indorsement should be Placed
a. Signature of Indorser
b. Indorsement in an Allonge, Section 31, NIL
3.2 - Indorsement must be for the entire Instrument, Section 32, NIL
3.3 - Negotiation of Indorsers Severally
3.4 - Persons Who Will Indorse, Sections 41,42 & 43, NIL
a. Indorser with Misspelled Name, Section 44, NIL
3.5 - Time and Place of Indorsement, Sections 45 & 46, NIL
3.6 - Kinds of Indorsement, Section 33, NIL
a. Black and Special Indorsement, Section 34, NIL
b. Conversion of Blank Indorsement to Special Indorsement, Section 35, NIL
c. Qualified Indorsement, Section 38, NIL
-How many contracts entered? See Campos & Campos, NIL, 1994 ed., p.4.

-Metropol (Bacolod) Financing & Investment Corp. v. Sambok Motors Co., et al.,
G.R. No. L-39641, February 28, 1983
d. Conditional Indorsement, Section 39, NIL
e. Restrictive Indorsement, Section 36 & 37, NIL
f. Kinds of Indorsements and Their Consequences

4. Negotiation by Prior Party, Section 50, NIL, see also Section 121, NIL
5. Striking Out of Indorsement, Section 48, NIL
6. Consideration For Issuance and Subsequent Transfer, see Chapter II, NIL
6.1 – Consideration is Presumed, Section 24 in relation to Section 28, NIL
6.2 - What Constitutes Value, Sections 25,26 & 27, NIL
a. Payee Need Not be the Obligee, see Vicky C. Ty v. People, G.R. No. 149275, September
27, 2004 & Ngo v. People, G.R. No. 155815, July 14, 2004
b. Issuance of Another Instrument
c. Discounting, see Banas Jr. v. Court of Appeals, et al, G.R. No. 102967, February 10, 2000
d. Donation & Gift
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e. Lien as Valuable Consideration, see Caltex (Philippines), Inc. v. Court of Appeals, et al.,
G.R. No. 97753, August 10, 1992

1. Rights of Holders In General

Holders
Holder defined – Section 191, NIL
a. Rights of a Holder, Section 51, NIL
- If NO Defenses Available, is distinction between Holder and HIDC material?
see - Chan Wan v. Tan Kim, G.R. No. L-15380, September 30, 1960, week 1.
- Atrium Management Corporation v. Court of Appeals, et al, G.R. No. 109491,
February 28, 2001, also Hi-Cement Corporation v. IBAA, G.R. No. 132403,
September 28, 2007.
2. Holders in Due Course.
2.1 – Requisites
5 a. Holder
b. Complete and Regular
c. Taking Before Overdue
(1) Installment Instruments
(2) Overdue Interest Payments
(3) Demand Instruments, Section 53, NIL.

d. Notice of Infirmity and Defect.

e. Good Faith – see Vicente R. De Ocampo & Co., v. Anita Gatchalian, et al., G.R. No. L-
15126, November 30, 1961
e.1 Good Faith in Crossed Check? See Patrimonio v. Gutierrez, G.R. No. 187769, June
4, 2014
f. Holder for Value, Section 26, NIL, see also Art. 2095, NCC re: pledge.
f.1 Performance
f.2 Notice Before Full Payment, Section 54, NIL
f.3 Negotiable Instruments as Value (Irrevocable commitment as payment)

2.2 – Accommodation Parties, Section 29, NIL.

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- Prudencio v. Court of Appeals, G.R. No. L-34539, July 14, 1986

2.3 – Presumption, Section 59, NIL, see Fossum v. Fernandez, et al., G.R. No. L-1946, March 28,
1923
a. Cases When Presumption Does Not Apply, see also Stelco Marketing Corporation v. Hon.
Court of Appeals, et al, G.R. No. 96160, June 17, 1992
b. Payee as a Holder in Due Course, see Vicente R. De Ocampo & Co., v. Anita Gatchalian,
et al., G.R. No. L-15126, November 30, 1961

6 3. Rights of Holders In Due Course.

Holders 3.1 – On Personal Defenses- see Section 57, NIL; Salas v. C.A. supra
(continuation) 3.2 – Real Defenses.
3.3 – Not Holder in Due Course, see Sps. Violago v. BA Finance Corp., et al, G.R. No. 158262,
July 21, 2008; RCBC Savings Bank v. Odrada, G.R. No. 219037, October 19, 2016; Mesina v.
IAC, 229 Phil. 495.
4. Shelter Rule – see Section 58, NIL
a. Repurchase by a Prior Party - see Fossum v. Fernandez, et al., G.R. No. L-1946, March
28, 1923, supra
5. Consumer Transactions
5.1 – Background: Protection in the United States
5.2 - Protection Under Philippine Jurisprudence
a. Consolidated Plywood and Industries, Inc., et al. v. IFC Leasing and Acceptance
Corporation, G.R. No. L-72593, April 31, 1987
b. Juanita Salas v. Hon Court of Appeals, January 22, 1990, supra
c. Great Asian Sales Center Corporation, et al. v. Court of Appeals, G.R. No. 105774, April
25, 2002
d. Rights of a Holder in Bills in Set,
-Section 178, NIL
-Section 179, 180 & 181, NIL

Cases: 1. Vicente R. De Ocampo & Co., v. Anita Gatchalian, et al., G.R. No. L- 15126,
November 30, 1961, see Payee as HIDC supra
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2. State Investment House, Inc. v. Court of Appeals and Nora Moulic, G.R. No. 101163,
January 11, 1993
3. Bataan Cigar & Cigarette Factory, Inc. v. The Court of Appeals, G.R. No. 93048,
March 3, 1994
4. State Investment House v. CA, supra
5. Fossum v. Hermanos, supra

7 Parties Who Are Liable 1. Nature of Liability

1.1 - Primary and Secondary Liability
1.2 – Distinguished from Warranties

2. Maker, Section 60, NIL

a. Tenor of Instrument
b. Warranties

3. Drawer, Section 61, NIL

a. Warranties and Admissions
b. Negativing Stipulation
3.1 Relationship with Drawee
3.2 Relationship With Collecting Bank
4. See Jai Alai Corp. of the Philippines v. BPI, G.R. No. L- 29432, August 6, 1975.

4. Acceptor.

5. Section 127, NIL.

a. Effect of Warranties, Section 62, NIL

4.1 Warranties or Admissions

4.2 Payment without Acceptance, Section 143, NIL
6. Checks are not to be presented for acceptance, see PNB v. National City Bank of New
York, et al, G.R. No. 43596, October 31, 1956.

5. Indorsers.
7. Section 63, NIL
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a. Indorsement by Agent
b. Two Indorsees, Section 68, NIL

5.1 – General Indorser, Section 66, NIL

a. Distinction with Section 65
b. Secondary Liability
(1) Two Contracts
(2) Not Guarantor
c. Warranties
d. Order of Liability
5.2 – Qualified Indorser
a. Warranties
b. Parole Evidence
5.3 – Indorser of Bearer Instruments
6. Person Negotiating by Delivery and Qualified Indorsers, Section 65, NIL
a. No Secondary Liability
b. Warranties
c. Extent of Liability

7. Agents.
a. Corporate Agents, Sections 18, 19, 20 & 21, NIL

7.1 – Person Who Could Sign

7.2 - Trade name or Assumed Name
7.3 – Agent
7.4 – Per Procuration

8. Accommodation Parties, Section 29, NIL.

a. Consideration.
b. Knowledge of Obligee.
8.1 – Surety of Accommodated Party.
8.2 – Irregular Indorsers [usually accommodation parties]
8.3 - Liability Among Themselves
8.4 – Does Section 29 apply to corporations? see Ernestina Crisologo-Jose v. Court of Appeals, et
al., G.R. No. 80599, September 15, 1989
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8 Midterm Examination
COVERAGE FOR
FINAL
III. EXAMINATIONS
(8 weeks)
9  Real Defenses and Personal Defenses

1. Minority and Other Causes of Incapacity

Defenses 1.1 – Minority, Section 22, NIL
1.2 - Ultra Vires Acts - Ernestina Crisologo-Jose v. Court of Appeals, et al., G.R. No. 80599,
September 15, 1989
2. Non-delivery and Conditional Delivery
2.1 – Non-delivery of Incomplete Instrument, Section 15, NIL
2.2 – Undelivered and Delivered Complete Instruments, Section 16, NIL
a. The Rules.
b. Need for Delivery
c. Authority to Deliver
d. Presumed Delivery
e. Conditional Delivery and Delivery for a Special Purpose.

3. Filling Up Blanks Beyond Authority. Section 14, NIL

3.1 – The Rules.
3.2 – Material Particular, Section 125, NIL
3.3 - Prima Facie Authority
a. Authority to Complete Instrument
b. Completed According to Authority
c. Signed Blank Piece of Paper
d. Holder in Due Course

4. Fraud.
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a. Fraud in Factum and Fraud in Inducement Distinguished.

b. Fraud in Collateral Obligation.
c. Factors to Consider in Fraud in Factum.

5. Material Alteration, section 124 & 125, NIL.

5.1 – Concept
a. Serial Number
5.2 – Alteration that Totally Prevents Recovery
5.3 – Alteration of Amount.
a. Effect of Alteration on Payee Who is a Holder In Due Course.

6. Ante-Dating or Post-Dating.
10 7. Inserting the Wrong Date.
Defenses (Continuation) 8. Absence and Failure of Consideration.
9. Duress and Intimidation.
a. When Duress is a Real Defense.
10. Illegality.
11. Prescription.

6. Forgery and Want of Authority.

6.1 – General Rules.
a. Unauthorized Signature.
b. Inoperative Forged Signature and Cut-Off Rule.
c. Effect on Negotiability

6.2 – Persons Precluded from Setting Up Forgery.

a. Warranty
b. Negligence
c. Estoppel and Ratification
6.3 – Effect of Mistaken Identity
6.4 – Forgery in Notes.
a. Maker’s Signature
b. Indorser’s Signature.
(1) Other Documents
(2) Bearer Instruments.
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6.5 – Forgery in Bills of Exchange.

a. Drawer’s Signature.
(1) Drawee-Acceptor’s Warranties.
(2) Negligence of Drawee.
b. Indorser’s Signature.
(1) Other Instruments.
(i) Payee can claim against Collecting Bank.
(ii) Drawer and Collecting Bank.
(iii) Warranty of Collecting Bank.
(iv) Recourse of Collecting Bank.
(2) Bearer Instruments.
6.6 – Unauthorized/Incomplete Signatures.
Cases:

1. Step to Charge Parties Liable

1.1. Primary Liability
Enforcement of Liability 1.2. Secondary Liability
11 a. Steps in Promissory Notes
b. Steps in Bill of Exchange
c. Acceptor for Honor and Referee in Case of Need
2. Presentment for Payment
2.1 Requisites for Sufficiency
2.2 Date of Presentment
a. Fixed Date
b. Payable on Demand
c. Stale Checks
d. Payable at the Bank
2.3 Time of Maturity
2.4 Time: How Computed
2.5 Payable at a Bank
2.6 Proper Place
a. Special Place
2.7 To Whom Presented
a. Partners
b. Joint Debtors
2.8 Instrument Exhibited
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2.9 When Presentment Not Necessary or Excused.

a. Example
b. Waiver
2.10 Retention of Liability Even if Not Presented

3. Presentment for Acceptance

3.1 How Made
3.2 Time to Present for Acceptance
a. When Time is Sufficient
3.3 When Delay or Presentment is Excused
3.4 Dishonor

4. Acceptance
4.1 Where Indicated
4.2 Time to Accept and Effect Retention
a. Sections 136 and 137 Distinguished
4.3 Future and Incomplete Bills
4.4 Kinds of Acceptance
a. Presumed Unqualified Acceptance

5. Notice of Dishonor
a. Effect of Absence of Notice on Separate Contract
12 Notice of Dishonor
b. Dishonor
5.1 Who Should Give Notice and Effects
Enforcement of Liability a. Agent
(continuation)
5.2 Form of Notice
a. Misdescription
b. BP 22
c. How Written Notice is Given

5.3 To Whom Given

a. Party is Dead
b. Notice to Partners
c. Notice to Joint Debtors
d. Notice to Bankrupt
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5.4 Time and Place of Notice

a. Time to Give Notice
b. Where Notice Must Be Sent

5.5 Waiver of Notice

a. Types of Waiver
b. To Whom Binding
c. Waiver of Protest

5.6 Delay of Giving Notice

5.7 Notice is Excused or Unnecessary
a. Drawer
b. Indorser
(1) Fictitious Drawee
(2) Section 115(b)
(3) Indorser is Accommodated Party
c. Notice When Previously Dishonored by Non-Acceptance

5.8 Effect of Failure on HDC.

6. Rules Regarding Foreign Bills

6.1 Protest
Foreign Bills
13 Enforcement of Liability
a. When Required and When Discretionary
(1) Inland Bills
(continuation)
(2) Cases When Protest is Necessary

b. Rationale
c. How Protest Is Made
(1) Lost Bills
d. When Made
(2) Protest for Better Security Before Maturity
e. Place of Protest
f. Protest Dispensed With
g. Distinguished from Notice of Dishonor
6.2 Acceptance for Honor
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a. Requisites
b. How Acceptance for Honor is Made
c. In Whose Favor
d. Liability of Acceptor for Honor
e. Maturity Date of Sight Bills
f. Other Provisions
g. Distinguished from Ordinary Acceptance
6.3 Payment for Honor
a. Preference
b. Effect on Subsequent Parties
c. Holder Has No Option
d. Rights of Payer
e. Distinctions

1. Concept
2. How Discharged
Discharge 2.1 Payment in Due Course
14 a. By Whom Made
(1) By person Secondarily Liable
(2) Striking Out Indorsement
(3) Accommodated Party
(4) Drawer
(5) Payment by Third Persons
b. By Whom
(1) Good Faith of Payor
2.2 Renunciation
2.3 Cancellation
2.4 Acts that Discharge Simple Contracts
a. Novation
2.5 Principal Debtor Becomes the Holder
3. Surrender of the Instrument
4. Discharge of Persons Secondarily Liable
4.1 Discharge of Prior Party
4.2 Tender of Payment
4.3 Release of Principal Debtor
4.4 Extension of Term
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a. Accommodation Party

1. Kinds
1.1 Cashier’s and Manager’s Checks
Checks a. Distinguished from Draft
b. Cannot be Payable to Bearer
15 1.2 Certified Check
a. Certification Procured by the Holder
1.3 Crossed Check
a. Applicable Laws
b. Effects of Crossing
c. Kinds of Crossed Checks Effect of Negotiability
d. Effect on Negotiability
e. Acceptance will mot Extinguish the Obligation
f. Other Provisions of BEA of 1882 on crossed check

1.4 Memorandum and Traveler’s Check

2. Checks and Ordinary Bills of Exchange: Distinguished

3. Relationship Between Payee, Drawee, and Drawer
a. Effect of Death of Drawer
b. Liability of the Drawee for Wrongful Dishonor of Checks
(1) Recoverable Damages
(2) Proximate Cause
(3) Mitigation of Liability
c. Liability of the Drawee for Wrongfully Dishonoring a Check
(1) Mitigation of Liability

4. Collection of Checks
4.1 Applicable Rules
a. Greater Manila Clearing
b. Electronic Clearing
4.2 Relationship of Parties
a. Warranties
(1) Warranties of Collecting Bank
(2) Warranties of Payee Depositor
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b. Duty of Care
c. Collecting Bank’s Liability for Quasi-Delict
d. Return of Items
4.3 Uncollected Deposits/Uncleared Checks
a. Solutio Indebiti not applicable
b. “DAUD” Checks

5. Stopping Payment
5.1 Iron Clad Rule
15 Checks 6. Crimes Involving Checks
(continuation) 6.1 Estafa
a. Negotiable Order of Withdrawal (NOW)
6.2 Batas Pambansa Blg. 22
a. Two Ways of Violating B.P. 22, see Mitra v. People, (2010)
b. Elements
c. Duty of Banks
6.3 Check Kiting

16 Final Examination -end-

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